Tuesday, December 7, 2010
Oil price hit 2 year high
Oil price is now at US$ 90 per barrel, a 2 year high, due to the weak US dollar and demand from China. Petrol prices are expected to increase in Singapore. This will also impact on electricity prices and other cost of living. The prospects for the global economy is not good. It is in a mess, with no solution. Read my view here.
Red Cross and donations
Red Cross reported an employee who pocketed $90,000. The Commission of Charities asked Red Cross to stop collecting actively soliciting of donations. In my view, the Commissioner has been over-reacting to this situation.
For a large organisation, the risk of embezzlement by an employee is always present. It is not possible to have perfect loss prevention - unless the requirements are made rigorous and impractical. In some cases, the correct response is taken when a loss occurs, i.e. loss reduction measure. The Red Cross has taken this measure to report to the Police and the Commissioner of Charities.
However, the mindset of the bureaucrat under the Singapore system is:
1. I need to have a perfect KPI, to earn a bonus and promotion.
2. Any mistake will damage my KPI
3. I close my eyes and ears - so that I do not have to report any shortcoming
4. If a problem occurs, I will try to find another agency to be responsible
5. If the problem is in my turf, I will find the perfect system (i.e. doesn't matter if the cure is worse than the pain).
(I removed my previous message about the corrupt manager, as I quoted the agency - sorry).
Tan Kin Lian
For a large organisation, the risk of embezzlement by an employee is always present. It is not possible to have perfect loss prevention - unless the requirements are made rigorous and impractical. In some cases, the correct response is taken when a loss occurs, i.e. loss reduction measure. The Red Cross has taken this measure to report to the Police and the Commissioner of Charities.
However, the mindset of the bureaucrat under the Singapore system is:
1. I need to have a perfect KPI, to earn a bonus and promotion.
2. Any mistake will damage my KPI
3. I close my eyes and ears - so that I do not have to report any shortcoming
4. If a problem occurs, I will try to find another agency to be responsible
5. If the problem is in my turf, I will find the perfect system (i.e. doesn't matter if the cure is worse than the pain).
(I removed my previous message about the corrupt manager, as I quoted the agency - sorry).
Tan Kin Lian
100 mishaps a day on expressways
The Straits Times reported an average of 100 mishaps a day on expressways, up 40% from three years ago. Most caused 20 minutes delay.
My views:
1. It is quite a hassle to drive on our expressways. It is congested most times of the day. Traffic moves slowly.
2. Singapore has the twin disadvantage of high cost (i.e. COE, ERP) and slow traffic.
3. I prefer to travel my MRT but it is quite troublesome to reach a destination that is not served by MRT
4. Our transport system is now quite bad.
Tan Kin Lian
My views:
1. It is quite a hassle to drive on our expressways. It is congested most times of the day. Traffic moves slowly.
2. Singapore has the twin disadvantage of high cost (i.e. COE, ERP) and slow traffic.
3. I prefer to travel my MRT but it is quite troublesome to reach a destination that is not served by MRT
4. Our transport system is now quite bad.
Tan Kin Lian
Renovation: Market forces decide certification fees
Reply in Straits Times Forum
WE THANK Mr Tan Kin Lian for his feedback ('Renovation certification: It does not make sense to impose such a heavy fee for small premises'; Dec 2).
Major G. Gobi
Senior Staff Officer (Media Analysis) Public Affairs Department
Singapore Civil Defence Force
http://www.straitstimes.com/ST
My reply
It is nice of Major Gobi to give a detailed reply. This is quite rare nowadays. In most cases, the relevant department ignore the issue, pretending that it is somebody else business.
Here are the points that I will be sending directly to Major Gobi:
1. Market forces does not work.
2. Consumers are being fleeced to pay high fees for minor work.
3. I have asked 4 renovation contractors to quote for the work - all of them added the cost of around $3,500 for the fire safety works, even though it is mainly minor addition/ alternation to the premises.
4. It is easy for SCDF to regulate the fee for small scale work - rather than leave the public to be fleeced
5. The SCDF can make enquiry with the public on how much they are paying to meet the fire safety requirements, rather than say "leave it to the market".
I will send the letter to Straits Times again, but they may not publish my letter.
Be wary of dishonest agents
A dishonest agent will tell his client that his company has introduced a new policy that offers better benefits, and get the client to switch to the new policy - allowing the agent to earn a fat commission again, at the expense of the client. Read this article and avoid being fooled by a dishonest agent.
Opposition participation and the coming election
Read the views by Patrick Lee, an astute political observer:
http://www.leesjuanpatworld.blogspot.com/
Quote
And the playing field has never been so inviting to the opposition than now. Even the illiterate uncles and aunties in hawker centres and void decks were discussing how difficult life is now with everything becoming more expensive. Even the ordinary folks are saying PAP is hoodwinking them.
Unquote
http://www.leesjuanpatworld.blogspot.com/
Quote
And the playing field has never been so inviting to the opposition than now. Even the illiterate uncles and aunties in hawker centres and void decks were discussing how difficult life is now with everything becoming more expensive. Even the ordinary folks are saying PAP is hoodwinking them.
Unquote
Suzy Orman
Suzy Orman is a financial adviser who hosts a weekly program on CNBC. She gives advice on investment, insurance and financial planning. She has strong views against insurance policies that are bad for consumers. Read her views here.
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